Answer:
Effect of price ceiling
When price ceiling is set below the market price, producers will begin to slow or stop their production process causing less supply of commodity in the market. On the other hand, demand of the consumers for such commodity increases with the fall in price.
Explanation:
Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result. Price floors prevent a price from falling below a certain level.
